The Thesis is on the exceptions to the principle of autonomy of independent
guarantees. Its broad aims are to assess the present approach in England and suggest
directions for reform. The research employs a comparative analysis of the common
law jurisdictions, in particular, Singapore, Malaysia, Australia and the US.
The rationale and effects of the principle of autonomy are examined. The Thesis
argues that, even though the principle plays an important role in commerce, it is not
paramount and could be breached in limited circumstances. The justifications, status
and scope of the exceptions such as fraud, illegality, unconscionability and breach of
the underlying contract are evaluated.
It is submitted that English law fails to provide adequate safeguards against
unscrupulous use of independent guarantees. Thus, it is suggested that the law should
be reformed to allow interference with the principle of autonomy, where the
beneficiaries' demands abuse legal rights or breach the underlying contracts.
Moreover, in order to ensure the practical effectiveness of the exceptions, it would be
necessary to relax the traditional restrictive approach to the availability of injunctive
relief.